Despite ETH Foundation's sales, Ethereum ETFs will attract $5 billion

Gemini predicts $5 billion in Ethereum ETF net inflows.

Ethereum Foundation sold 2,266 ETH since January.

Ethereum may drop below $3,378 for a $3.75 million liquidation.

Ethereum (ETH) fell more than 1.4% on Tuesday after the Ethereum Foundation sold additional ETH. According to Gemini, ETH ETF might generate $5 billion in net inflows within six months of introduction.


Gem** analysts estimated that ETH ETFs will have $13 billion to $15 billion in AUM in six months after Grayscale's Ethereum Trust conversion.

An ETH ETF net inflow of $7.5 billion in six months would be a "significant upside surprise," while $3 billion would be disappointing, according to the research.

Bloomberg analyst James Seyffart maintained his expectation that ETH ETFs will take 20-25% of Bitcoin ETF flows. ETH ETFs will become the second most successful ETF category after Bitcoin ETFs, he said.

In May, the SEC accepted spot ETH ETF 19b-4 registrations, but issuers must submit S-1 registration statements before the products can launch in the US.

Spot On Chain reported that the Ethereum Foundation begun selling ETH on Tuesday after trading 100 ETH for 343,934 DAI. This adds to the Foundation's 2,266 ETH sales for $6.56 million since January.

On Tuesday, Ethereum fell more than 1% to $3,412 after failing to break $3,547 barrier.

ETH rejected at $3,523, prompting $14.81 million in long liquidations, according to Coinglass. But short liquidations have slowed, representing for just 33% of ETH's 24 hour liquidation.

Before recovering, ETH may hit $3.75 million liquidation pool at $3,378. This matches ETH's 4-hour chart, which indicates $3,739 as important support. Around this pricing, 3.71 million addresses bought 3.33 million ETH, according to IntoTheBlock.

Zooming out, ETH must break $3,629 barrier, which it has failed to break in three weeks, to support optimistic mood about the spot ETH ETF debut.

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